Warren Buffett<\/a>. All of that improves your financial literacy. Similarly, if you are part of the income generation classes or workshops on topics such as tax savings, estate planning or depending upon your age maybe Social Security Medicare or required minimum distributions can be extremely beneficial. Not only can they provide you with the information you need to make important decisions in the short term, but they can greatly improve your financial literacy in the long run. So keep an eye out for classes or workshops in your own town or neighborhood. Now it’s time to welcome back Kara Murphy chief investment officer of Sun America to discuss financial literacy in your takes on all of this. So Kara obviously Sun America has its own products that it advisers offer but are not required to offer. They can offer your proprietary products they can offer some other ones. How \u00a0do you and your company help ensure that what they’re saying is unbiased and that any information that’s coming out in terms of advertising is unbiased, I know I’m putting on the spot this isn’t your area your chief investment officer you’re you know you’re a C.F.A. money manager like me but. How does your company do that?<\/p>\nKara Murphy:<\/strong> Well we spend a lot of time making sure that we have the right message about our products. We have to make sure that we understand what goes into our portfolios, what we’re holding and more importantly sometimes the process by which we get there. So we spend a lot of time talking about process, we talk with a lot of advisors about the way that we construct our portfolios or systematic approach how we view different factors and how that all feeds into the end result of the whole of the holdings that we actually have in there, so it’s very important to us to make sure that we get the message correct and that that’s what we’re really going for we talked to advisers.<\/p>\nDavid Scranton:<\/strong> So, what you’re basically doing is you’re educating them so that they could better educate their clients that help the clients make informed decisions.<\/p>\nKara Murphy:<\/strong> Absolutely and again it’s not just about the individual holdings that are in the portfolio it’s the process and how we get there and to make sure that we do that on a consistent basis.<\/p>\nDavid Scranton:<\/strong> Now I know we talked about your just a minute ago before the break I talked about the fact that a lot of the business that they do as an insurance company consists of variable annuities. Which for our viewers if you’re not aware are basically sub accounts kind of like mutual funds wrapped in insurance wrapper. You know tell me is there is there any difference in how you invest behind the scenes the money for a sub-account and a variable annuity, giving that they have that insurance wrapper compared to maybe a more equivalent mutual fund or does that not really matter. It depends, so we spend a lot of time talking with the folks at each of those channels to make sure that we understand, you know what type of risk that they’re looking for in the portfolio so that discussion really comes in the construction part as we’re developing the product and determining what the investment strategy is going to be. Now there are times when the same strategy will work in the mutual fund world and in the V.A. world but there are other times when they’re looking for something different, so it’s really a matter of an individual discussion for each of the channels that we work with.<\/p>\nDavid Scranton:<\/strong> When you when you talk to advisors if you had a say in general what is the one area where advisers might need a little bit more education. What would that area be?<\/p>\n\u00a0<\/strong>Kara Murphy:<\/strong> So, one of the most interesting topics that have been coming up recently was where I feel like advisers are maybe a little bit behind the curve and learning about is environmental social and government investing. So this is \u00a0a relative way, well I should say it’s been around for a long time but it’s been getting a lot more press recently and when we look at server is we find that investors are very interested in these types of strategies asset managers are increasingly beginning to offer these types of products but it’s really adviser who is kind of in between these two areas who’s not yet very comfortable with the types of products that are offered they don’t yet understand that you don’t have to give up return in order to have something that is ESG focused, so they’re not really talking about it so a lot of the work that we do is getting them educated in what’s out there.<\/p>\nDavid Scranton<\/strong>: And in the twenty seconds we have left if you can just tell us what your opinion is of where the average investor needs the most education today.<\/p>\nKara Murphy:<\/strong> The average investor needs to make sure that whatever their plan is they stick with that is the most important thing<\/p>\nDavid Scranton:<\/strong> So create a plan, work your plan, stick with your plan, that’s good advice. Very good advice, too many people make emotional decisions and that’s why as you know a lot of investors in the buying high selling low by accident, so Kara thank you are thank you so much for being on our show today was wonderful having you.<\/p>\nHanna Ostapchuk:\u00a0<\/strong>We never know when interest rates will shoot up but they can’t stay near record lows forever so if you’re investing in bonds now is a good time to start thinking about playing defense and making changes to your financial future.<\/p>\n\u00a0<\/strong>Monte Resnick:\u00a0<\/strong>Well we all hear now is a great time to buy a home because interest rates are so low but we all know that at some point down the road in the future we don’t know when interest rates are going to raise. Interest rates and bonds have an inverse relationship as interest rates go up the value of the bond goes down so the reason you really want to look at the bonds in your portfolio right now is to understand how your position for a rising interest rate environment.<\/p>\nHanna Ostapchuk:\u00a0<\/strong>If retirement is around the corner be careful with your bond selection to understand what individual bonds you own as well as bond you to a fund then talk with your financial advisor to figure out the best strategy for you and your family. I\u2019m Hanna Ostapchuk.<\/p>\nDavid Scranton:\u00a0<\/strong>I’d like to thank all my guests for joining us for another episode of the income generation. I’d also like to think you are new and returning viewers there’s no question that we live in challenging times the so-called information age has indeed evolved into an age so filled with information sources in various outlets,\u00a0it\u2019s harder than ever before to know what’s accurate, what’s reliable and what’s truthful. But that same reality makes it more important than ever to sort it all out. No one! Should ever make a major financial decision based on information that is simply convenient or just seems credible. A general would never commit his troops to battle without making sure he had good Intel first and gathering good Intel takes diligence and education the same is true when it comes to distinguishing good intel from bad in our financial world. It starts with improving your own financial literacy and it should conclude\u00a0by working in partnership with a qualified objective financial advisor who understands your individual goals and challenges. Thanks for watching if you’re close to retirement and you really want to know how to protect and maximize your money it’s absolutely essential that you stay informed and up to date and right here is where you could do it on the income generation. I’m David Scranton, thanks again, I’ll see you next week.<\/p>\n","protected":false},"excerpt":{"rendered":"